Skip to content
Edit post

European Commission predicts Russia's GDP growth in 2024 to reach almost 3%

by Nate Ostiller and The Kyiv Independent news desk May 15, 2024 5:39 PM 2 min read
A man walks past the Russian Central Bank headquarters in downtown Moscow on September 6, 2023. Photo for illustrative purposes. (Alexander Nemenov/AFP via Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

The European Commission predicted that Russia's GDP growth for 2024 will be 2.9% in a report published on May 15.

The forecast was lower than the one reported by Russian Finance Minister Anton Siluanov in April, who claimed that the country's GDP would grow by 3.6% in 2024.

Russia's economy faced a shock and subsequent contraction after the beginning of the full-scale invasion of Ukraine in 2022. As the country faced the onset of Western sanctions and growing isolation, Russia's GDP dropped by 2.1% in 2022.

Since then, Russia has managed to survive Western sanctions through a variety of methods and has continued to bolster its economy through oil sales, particularly to India and China. Russia's GDP growth for 2023 was 3.6%.

"The Russian economy started 2024 on a strong footing," the commission's report said.

"The labor market remained tight and is set to continue that way, as declining net inward migration and increased labor demand from the military sector are expected to persist as long as the war of aggression in Ukraine continues."

While lower than the previous year, the strong growth predictions still raise questions about the effectiveness of Western sanctions and economic isolation. Sanctions against Moscow encompass a broad array of economic areas, including restrictions on trade, finance, technology and dual-use goods, industry, transport, and luxury goods.

The U.K. Defense Ministry suggested in November 2023 that Russia's economy was "at risk of overheating" due to increased military spending, shortages in the labor market, and growing inflation.

Russia's economy has remained more resilient than expected, although it is increasingly dependent on fewer trade partners than before the full-scale invasion.

Designated Russian defense minister vows to further integrate economy, military
Integrating the military with Russia’s economy is a key task for its Defense Ministry, soon-to-be-appointed Russian Defense Minister Andrei Belousov told the Federation Council, Russia’s upper house of parliament, on May 14.
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
6:30 PM

Media: SBU drones strike airbase, oil refinery in Russia.

The Security Service of Ukraine (SBU) in conjunction with the country's new Unmanned Systems Forces, launched a drone attack on Russia's Kushchevskaya military airbase and Slavyansk oil refinery plant overnight, Ukrainska Pravda reported on May 19.
11:10 PM

Decorated Ukrainian pilot killed in action.

Lieutenant Colonel Vasyliuk, the brigade’s chief of staff and a deputy commander of an aviation squadron, was killed “recently” while conducting a combat mission, the brigade said.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.